Is it correct to do so:

$E(X^{-1} Y) = E_x(E(X^{-1} Y \vert X) = E_x(X^{-1} E(Y \vert X)) $

Are we allowed to use LIE in case of non linear functions like $X^{-1} $

  • 2
    $\begingroup$ Yes, as $f(X)$ is constant conditional on $X$. $\endgroup$ – Xi'an May 16 at 20:23
  • $\begingroup$ @Xi'an Thank you. $\endgroup$ – Raghav Goyal May 16 at 20:53

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